Warner Bros says its board is reviewing new Paramount offer

Warner Bros Discovery is considering a new takeover proposal from Paramount Skydance Corp, the latest salvo in a months-long battle for control of one of Hollywood’s most famed studios.

The parent of HBO and CNN said its board will review the proposal and respond, according to a statement on Tuesday. Warner Bros didn’t specify the terms of the new offer, but Bloomberg News reported on Monday that it was higher than the $30 a share Paramount was offering previously.

If the Warner Bros board deems the new Paramount offer superior to the one it has already accepted from Netflix, then Netflix will have four days to make a counteroffer, according to the terms of their merger agreement.

In the meantime, Warner Bros told investors Tuesday that it still has a deal with Netflix and stockholders shouldn’t tender their shares to Paramount.

“The Netflix merger agreement remains in effect, and the board continues to recommend in favor of the Netflix transaction,” Warner Bros. said.

Shares of Paramount and Netflix rose less than 1% in premarket trading in New York.

Paramount has submitted multiple bids for Warner Bros. since last year and has been repeatedly rebuffed. Instead, Warner Bros. reached an agreement in early December to sell its studios and streaming business to Netflix for $27.75 a share, a transaction worth $82.7 billion, including debt. Their plans involve an eventual spin-off of Warner Bros cable-TV channels like CNN and TNT to investors.

Paramount, which is led by technology heir David Ellison, has repeatedly tweaked the terms of its offer, which valued Warner Bros as a whole at $108 billion, including debt. Ellison has taken his proposal directly to shareholders and threatened a proxy battle.

In a revised offer earlier this month, Paramount addressed some of Warner Bros.’ concerns by agreeing to pay the $2.8 billion fee that would be owed to Netflix if its deal fell through, as well as agreeing to back some of Warner Bros debt costs.

Last week Warner Bros reopened talks with Paramount for a seven-day period in order to give Paramount an opportunity to submit its “best and final” offer.” At the time, Warner Bros said Paramount indicated that if discussions resumed, the company would agree to pay at least $31 a share.

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